LHR.UN Lakeview Hotel Invest Corp

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S NEWS WIRE SERVICES / WINNIPEG, Oct. 26, 2011 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") announced that it has entered into definitive agreements to refinance its hotel property in Prince George, British Columbia (the "Prince George Hotel").  As part of the refinancing, the Series A Senior Secured Debentures of Lakeview REIT in the principal amount of $10,250,000 (the "Secured Debentures") will be redeemed in full and delisted from the TSX Venture Exchange. Lakeview REIT has arranged with a lender to provide property specific first charge financing of $7,000,000 on the Prince George Hotel.  Approximately $6,800,000 of such funds will be used to pay down the Secured Debentures, with the holders of the Secured Debentures other than the Majority Debentureholders (as defined below), receiving the full principal amount owing to them plus accrued and unpaid interest up to and including November 1, 2011. Following the payment as referred to above, the two largest holders of the Secured Debentures who collectively own more than 98% of the issued and outstanding Secured Debentures (the "Majority Debentureholders") will each receive a debenture for the balance owing to them, respectively (the "New Debentures").  The aggregate amount owing under the New Debentures will be approximately $3,500,000.  The New Debentures will be secured by property specific second charge security behind the above referenced first lender. We anticipate the above referenced refinancing to close Wednesday, October 26, 2011. Lakeview REIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol "LHR.UN".  Lakeview REIT receives income from ownership, management and licensing of hotel properties.  For further information on Lakeview REIT please visit our website www.lakeviewreit.com. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Lakeview Hotel Real Estate Investment Trust CONTACT: Keith Levit, President, or Avrum Senensky, Executive VicePresidentTel: (204) 947-1161, Fax: (204) 957-1697,Email asenensky@lakeviewhotels.com

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